Oracle error ORA-01882 timezone region not found

I installed SQLDeveloper 3 on Windows 7 and trying to connect to the database 10g R2 I get the following error: Ora-01882 timezone region not found. I can access the database from sqlplus, no problem.
I did the following:
in sqldeveloper.conf, I added AddVMOption -Duser,timezone="+02:00"
upgraded Java to Java 6 Update 31
set environment variable TZ to OEZ-02
set environment variable JAVA_OPTS to -Duser.timezone="+02:00"
Nothing helps.
Can you please assist?
Thank you

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